Cabot Corporation (CBT)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,736,000 | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 |
| Total stockholders’ equity | US$ in thousands | 1,425,000 | 1,264,000 | 898,000 | 947,000 | 691,000 |
| Financial leverage ratio | 2.62 | 2.85 | 3.93 | 3.49 | 4.02 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,736,000K ÷ $1,425,000K
= 2.62
Cabot Corporation's financial leverage ratio has been fluctuating over the past five years, indicating changes in the company's debt levels relative to its equity. The ratio decreased from 4.02 in 2020 to 2.62 in 2024, which suggests a reduction in the company's reliance on debt financing compared to equity. This downward trend may indicate a stronger financial position with lower debt levels relative to equity.
However, it is essential to note that the ratio increased in 2022 to 3.93 before declining again in subsequent years. This temporary increase in leverage could have been due to strategic decisions or specific financial events during that period. Overall, Cabot Corporation's financial leverage ratio has shown variability, and future trends in the ratio should be monitored closely to assess the company's capital structure and financial health.
Peer comparison
Sep 30, 2024